Buy Car Insurance in 20 Seconds !
The concept of car insurance plans is based mainly on the car itself rather than the owner. That is why you are able to transfer your car insurance plan, switch policies effortlessly and even retain your no-claim bonus benefits regardless of how many times you buy a new car. But this creates an idea that you only need a car insurance plan when you own a car. However, the fact is that all licensed drivers need car insurance cover, even if they do not own a vehicle and drive a borrowed one. This is where a non-owner car insurance plan comes in. Designed to cover drivers on a per-person basis, a non-owner auto insurance plan is perfect for folks who drive borrowed or rented cars a lot.
Non-owner car insurance plans are liability covers for licensed drivers who do not own a car but drive often. A typical non-owner auto insurance plan will pay for the damages caused to the third-party vehicle as well as the medical treatment of the third party if the policyholder causes an accident while driving a vehicle that they do not own. It may also cover legal fees if the policyholder is sued for the accident they caused. Depending on the coverage level your insurance provider offers, non-owner auto insurance plans may also cover a few additional things such as bodily injury. In addition to this, non-owner car insurance also serves as proof of insurance.
There are two ways a non-owner car insurance plan may come into effect. Suppose you are driving a borrowed car and happen to cause an accident. If the primary insurance plan of the car owner covers a part of the damage caused, your non-owner auto insurance will cover the rest of the cost. Let’s assume that the primary insurance plan of the owner does not cover damages in the event that anyone but the owner or a named driver is driving the car. Here, your non-owner car insurance plan will bear all expenses up to the assured sum limit. This simply means that non-owner car insurance plans are secondary level coverage.
Most non-owner car insurance plans are designed to cover the minimum required car insurance coverage in the UAE, i.e., third-party liability coverage. However, several plans will cover a lot more than just the bare minimum. Given below are some of the additional coverage benefits you can look forward to getting with a non-owner auto insurance plan:
You may need to get a non-owner auto insurance plan if you can find yourself fitting in one of the below-given scenarios:
If you frequently rent cars from rental agencies, you may consider buying a non-owner auto insurance plan. Renting a car in the UAE requires you to buy car rental insurance either way. Most rental agencies that rent the cars buy their own rental insurance and then charge their customers a certain fee for car insurance during their rental period. If the rental agency sees a non-owner auto insurance plan as a valid option, prefer to get that instead of the rental car insurance plan. Non-owner car insurance plans will end up being a lot more cost-effective in the long run as compared to other kinds of car insurance plans for rented cars. Just make sure that you get a collision damage waiver for the rented car from the agency, or have credit card rental insurance to cover them.
If you constantly borrow a car from your friends or relatives, non-owner car insurance might be for you. Borrowing a car will also include arrangements like carpooling, where you drive your colleague’s car on a rotation basis. While your friend may have a comprehensive car insurance plan for their car, it will not cover you as a driver. Other drivers, apart from the owner of the car, are only covered by insurance plans if they are included as named drivers in the insurance plan. So, if you happen to get in an accident, you will not get any accidental injury coverage and neither will the car be covered for its own damages. One thing you need to know here is that if the car you borrow belongs to your flatmates or is the only car that you borrow frequently, you must have your name added to the primary car insurance plan of that vehicle. If not, your non-driver car insurance plan may not cover you in the event of an accident. The frequency of borrowing one particular vehicle matters a lot here. If there are a few different cars that you borrow, being a named driver for all of them is not necessary.
The ‘lapse’ or gap in your car insurance coverage can lead you to lose several of your benefits in the blink of an eye. For example, you will lose your accumulated no-claim bonus if there is a gap between the car insurance covers taken under your name. Selling your car can be tricky considering the benefits that are at stake. Non-driver car insurance plan can benefit you a lot if the plan of selling your car is afoot. Since you do not need to own a vehicle to get this insurance, getting this cover will be fairly easy. Moreover, it will offer the required insurance coverage you may need to drive another vehicle during this time.
Committing traffic violations can lead to vehicle confiscations in the UAE. If the violation is serious enough, you may not be able to drive your car for a prolonged period. Having a non-owner car insurance plan in a situation like this can be quite helpful. You will not only be able to drive other vehicles using your non-driver car insurance plans, but it also serves as proof of financial responsibility. This also betters your chances of getting your license reinstated sooner than expected.
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Even when you are driving a car, you may not always need a non-owner car insurance plan. Here are some situations where you will not require a non-owner car insurance plan:
Company cars that are driven by employees are insured to cover them as the drivers of the allotted vehicle. Most companies also include the name of the employee in the car insurance plan for the concerned vehicle. If any of these conditions apply to the company car that you drive, getting a non-owner car insurance plan will be an expense in vain for you. However, keep in mind that the car insurance plan of your company car will only cover you when you use the company car for work-related purposes. If you use your company car for personal reasons, you will not be covered by the corporate fleet insurance of your company. If this is something you think would happen, consider getting a non-owner auto insurance plan.
Naturally, if you own a car, getting a non-owner car insurance plan becomes redundant. Even if you borrow or rent another vehicle with a valid contract in place, your own liability insurance coverage will cover you in the event of an accident. If your insurance provider has a slightly or entirely different set of rules regarding this kind of cover, consider getting an umbrella car insurance policy instead. In addition to that, if you own a car but also drive other cars that are owned by your family members or spouse, simply consider being a named driver.
If you hardly ever borrow another car, you probably won’t need a non-owner car insurance plan. In addition to that, if your friend or relative has permitted you to drive the car, the primary car insurance plan will cover you for accidental injuries and damages. However, there are a few things that you need to keep in mind here. If a claim is made against the primary car insurance plan for an accident where you were driving the car, the premium of the plan will increase during the next tenure. Any costs that are beyond the assured coverage of the plan are to be borne by you. And finally, not all insurance providers extend the coverage to include other occasional drivers of the car. Make sure that you or your friend who owns the car has already checked this.
Just like in the case of your company, driving a family car also doesn’t require you to get a non-driver car insurance plan. You can simply get your name added as a named driver in the primary car insurance plan of the vehicle under consideration. The same applies if the car belongs to a flatmate or a roommate. Since the resident address is the same for you both, you can easily add your name as a named driver of the car that you borrow.
Ans. Your non-owner car insurance will not cover your own car in any scenario. You will have to buy a new comprehensive car insurance plan to cover the car that you own. You can continue to use the non-owner car insurance cover for the times when you drive a borrowed vehicle.
Ans. While you will be covered for third-party liabilities when you drive a rental car, the damages to your rental car may not be covered. Only a handful of non-owner car insurance policies cover own damages and bodily injuries for the policyholder. You can either have the rental car covered with the rental insurance your credit card offers or pay a small fee to the rental agency for the coverage.
Ans. No, deductibles do not apply to non-owner car insurance plans. Whatever the expenses are, they will be covered in full up to the assured sum offered in the plan that you buy.
Ans. No, non-owner car insurance plans are not designed to insure a vehicle that you do not own yourself. These plans are person-based instead of being vehicle-based. This means that only the driver can be insured by non-owner car insurance against third-party liabilities and some other benefits when driving a car they do not own.
Ans. Yes, one of the biggest benefits of a non-owner car insurance plan is that it prevents the lapse or gap in insurance coverage for the period when you do not own a vehicle yourself. Hence, your no-claim bonus will not expire if you continue to own a car insurance plan in the form of non-owner insurance rather than the traditional one.
Ans. Yes, non-owner car insurance kicks in as secondary coverage if the primary cover of the borrowed vehicle is not enough to cover all the damages caused when you are driving. If the primary coverage has provisions that do not cover the damages when anyone except the owner is driving the car, then non-owner car insurance works as the primary plan to cover the damage repair expenses.
Ans. Unlike traditional car insurance plans, named drivers from your family or residence cannot be added to a non-driver car insurance policy. It is a per-person plan and hence can only cover one policyholder.